Breaking Down Agilent Technologies, Inc. (A) Financial Health: Key Insights for Investors

Are you keeping a close watch on your investments and seeking a detailed analysis of Agilent Technologies' financial standing? Let's delve into the key figures from the 2024 fiscal year to gauge the company's financial health. Agilent Technologies reported revenue of $6.51 billion, a 4.7% decrease compared to the previous year. However, the company's GAAP net income saw a 3.95% increase, reaching $1.289 billion. What do these figures suggest about Agilent's operational efficiency and profitability? Keep reading to uncover more insights into Agilent's assets, liabilities, and overall financial strategy.

Agilent Technologies, Inc. (A) Revenue Analysis

Analyzing Agilent Technologies, Inc. (A)’s revenue streams provides critical insights into the company’s financial health and strategic direction. The company reported revenue of $1.70 billion for the fourth quarter ended October 31, 2024, which represents an increase of 0.8% on a reported basis but a decline of 0.3% on a core basis compared to the fourth quarter of 2023. For the full fiscal year 2024, Agilent's revenue reached $6.51 billion, a 4.7% decrease compared to the $6.833 billion in 2023.

Here's a closer look at the key aspects of Agilent's revenue streams:

• Primary Revenue Sources: Agilent's revenue is primarily derived from three main segments:
  • Life Sciences and Applied Markets Group (LSAG): This segment is the largest contributor. In fiscal year 2024, LSAG accounted for 49.39% of Agilent's revenue.
  • Diagnostics and Genomics Group (DGG): DGG is another significant segment.
  • Agilent CrossLab Group (ACG): While the smallest segment, ACG is still a vital part of Agilent's revenue mix, accounting for 25.25% of its revenue in fiscal year 2024.
• Year-over-Year Revenue Growth Rate:
  • The annual revenue for 2024 was $6.51 billion, a 4.73% decline from 2023.
  • For the twelve months ending January 31, 2025, the revenue was $6.533 billion, a 3% decline year-over-year.
• Contribution of Business Segments: The revenue contribution from different business segments in Q4 2024 is as follows:
  • ACG reported fourth-quarter revenue of $426 million, a 5% increase year-over-year. Full-year revenue for ACG was $1.64 billion, also a 5% increase.
  • DGG reported fourth-quarter revenue of $442 million, a 1% decrease year-over-year. The full-year revenue for DGG was $1.65 billion, a 6% decrease.
• Geographical Revenue:
  • The Americas accounted for 39.52% of the revenue.
  • Europe contributed 27.19%.
  • Asia Pacific made up 33.29%.

Here's a table summarizing Agilent's FY2024 revenue by segment:

Understanding these revenue streams and their changes helps investors gauge Agilent's performance and future prospects. Despite a challenging market environment, Agilent is implementing strategies to drive growth and improve profitability.

To further understand the investors of Agilent Technologies, Inc., read this article: Exploring Agilent Technologies, Inc. (A) Investor Profile: Who’s Buying and Why?

Agilent Technologies, Inc. (A) Profitability Metrics

Assessing Agilent Technologies, Inc. (A)'s financial health requires a close examination of its profitability metrics. These metrics provide insights into how efficiently the company generates profit from its revenue and assets. Key profitability indicators include gross profit margin, operating profit margin, and net profit margin. Analyzing these metrics over time and comparing them against industry averages can reveal important trends and competitive positioning.

For the fiscal year 2024, Agilent Technologies, Inc. (A) reported a gross profit of $4.48 billion. This translates to a gross profit margin of approximately 54.2%. The gross profit margin reflects the company's efficiency in managing its cost of goods sold (COGS) relative to its revenue. A higher gross profit margin indicates that Agilent Technologies, Inc. (A) is effective at controlling its production costs and/or commands a premium for its products and services.

Agilent Technologies, Inc. (A)'s operating profit for fiscal year 2024 was $1.75 billion, resulting in an operating profit margin of approximately 21.2%. The operating profit margin measures the company's profitability after accounting for both the cost of goods sold and operating expenses. This metric provides a clearer picture of the company's core business profitability, excluding the impact of interest and taxes. Effective cost management and operational efficiency are critical for maintaining a healthy operating profit margin.

The net profit for fiscal year 2024 was reported as $1.4 billion, yielding a net profit margin of about 16.9%. Net profit margin is a comprehensive measure of profitability, reflecting the percentage of revenue that remains after all expenses, including cost of goods sold, operating expenses, interest, and taxes, have been deducted. A consistent or increasing net profit margin indicates that Agilent Technologies, Inc. (A) is managing its overall costs effectively and converting revenue into profit efficiently.

Here's a summary of Agilent Technologies, Inc. (A)'s profitability metrics for fiscal year 2024:

• Gross Profit: $4.48 billion
• Gross Profit Margin: 54.2%
• Operating Profit: $1.75 billion
• Operating Profit Margin: 21.2%
• Net Profit: $1.4 billion
• Net Profit Margin: 16.9%

A comparative analysis against industry peers and historical trends would offer a more nuanced understanding of Agilent Technologies, Inc. (A)'s financial performance. However, these figures provide a solid foundation for assessing the company's profitability.

To further enrich our understanding, a comparison of these profitability ratios with industry averages is essential. This benchmark helps to reveal whether Agilent Technologies, Inc. (A) is outperforming or underperforming relative to its competitors. Additionally, analyzing trends in these ratios over the past few years can highlight improvements or declines in operational efficiency and cost management.

Here's an example of how Agilent Technologies, Inc. (A)'s profitability metrics could be organized in a table for clear comparison:

Understanding these metrics is crucial for investors looking to assess Agilent Technologies, Inc. (A)'s financial health and long-term viability. For more insights into Agilent Technologies, Inc. (A)'s investor profile, consider reading Exploring Agilent Technologies, Inc. (A) Investor Profile: Who’s Buying and Why?.

Agilent Technologies, Inc. (A) Debt vs. Equity Structure

Understanding how Agilent Technologies, Inc. (A) finances its operations and growth is crucial for investors. This involves looking at the company's debt levels, its debt-to-equity ratio, and how it balances debt and equity financing.

Agilent’s financial statements provide insights into its debt profile. As of fiscal year 2024, Agilent's debt structure includes both short-term and long-term obligations. Examining these figures helps to understand the company's immediate and future financial commitments.

Here's a brief overview of what to consider:

• Short-term Debt: Obligations due within one year.
• Long-term Debt: Obligations due beyond one year.

The debt-to-equity ratio is a key metric for assessing financial leverage. It indicates the proportion of debt Agilent uses to finance its assets relative to the value of shareholders' equity. A high ratio suggests greater financial risk, while a lower ratio indicates a more conservative approach.

For context, it’s useful to compare Agilent’s debt-to-equity ratio with industry standards. This benchmark helps investors determine whether Agilent's leverage is typical for its sector or if it deviates significantly, which could signal potential concerns or strengths.

Keeping track of Agilent's recent financial activities, such as debt issuances or refinancing, provides insight into how the company manages its capital structure. Credit ratings from agencies like Standard & Poor's and Moody's can offer an external perspective on Agilent's creditworthiness.

Agilent strategically uses both debt and equity to fund its growth and operations. Debt financing can provide capital without diluting equity, but it also introduces fixed interest payments and the risk of default. Equity financing, on the other hand, doesn't require repayment but dilutes ownership.

Balancing these two forms of financing is critical. Agilent aims to optimize its capital structure to maintain financial flexibility, manage risk, and maximize shareholder value. The specific mix of debt and equity reflects Agilent's strategic priorities and financial outlook.

The following table illustrates a hypothetical overview of Agilent's Debt/Equity structure (Note: The data below is purely illustrative and should not be considered actual financial data):

Understanding Agilent's debt versus equity structure is essential for assessing its financial health and making informed investment decisions. Analyzing these components provides a clearer picture of the company’s financial strategy and risk profile.

Read more about Agilent's investors: Exploring Agilent Technologies, Inc. (A) Investor Profile: Who’s Buying and Why?

Agilent Technologies, Inc. (A) Liquidity and Solvency

Understanding Agilent Technologies, Inc. (A)'s financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency indicates its ability to meet long-term obligations. Key metrics like current and quick ratios, working capital trends, and cash flow statements provide valuable insights.

Agilent Technologies, Inc. (A)'s liquidity can be gauged through the following:

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets.
• Quick Ratio: Similar to the current ratio, but it excludes inventory from current assets, providing a more conservative view of liquidity.

Analysis of working capital trends involves monitoring the difference between a company's current assets and current liabilities over a period. A positive working capital balance indicates that a company has enough short-term assets to cover its short-term liabilities. Monitoring the changes in working capital can reveal whether a company's liquidity position is improving or deteriorating.

Cash flow statements offer a comprehensive view of all cash inflows and outflows. These statements are typically divided into three sections:

• Operating Activities: Cash generated from the normal day-to-day business operations.
• Investing Activities: Cash flow related to the purchase and sale of long-term assets, such as property, plant, and equipment (PP&E).
• Financing Activities: Cash flow related to debt, equity, and dividends.

By examining these cash flow trends, investors can determine whether Agilent Technologies, Inc. (A) is generating enough cash from its operations to cover its capital expenditures and debt obligations. Consistent positive cash flow from operations is generally a positive sign, whereas negative cash flow from operations may indicate potential liquidity concerns.

Solvency can be assessed using various ratios and metrics, such as:

• Debt-to-Equity Ratio: This ratio measures the proportion of debt a company uses to finance its assets relative to the amount of equity.
• Interest Coverage Ratio: This ratio measures a company's ability to pay the interest on its debt.

A high debt-to-equity ratio may indicate that a company is taking on too much debt, which could increase its risk of financial distress. A low-interest coverage ratio may indicate that a company is struggling to pay the interest on its debt, which could also lead to financial problems.

Here is a sample table illustrating how these metrics might be organized for analysis:

Potential liquidity concerns could arise if Agilent Technologies, Inc. (A) experiences a significant decline in revenue, an increase in operating expenses, or a large debt maturity. Strengths include a strong cash position, consistent profitability, and a track record of generating positive cash flow.

Understanding Agilent Technologies, Inc. (A)'s mission, vision, and core values can provide additional context for assessing its long-term financial health. More information is available at: Mission Statement, Vision, & Core Values of Agilent Technologies, Inc. (A).

Agilent Technologies, Inc. (A) Valuation Analysis

Determining whether Agilent Technologies, Inc. (A) is overvalued or undervalued requires a multifaceted approach, considering several key financial metrics and market indicators. Here's a breakdown of the essential factors:

Valuation Ratios:

• Price-to-Earnings (P/E Ratio): As of April 2025, Agilent Technologies' P/E ratio is around 23.45 to 26.8. This indicates the amount investors are willing to pay for each dollar of earnings.
• Price-to-Book (P/B Ratio): The P/B ratio for Agilent Technologies in April 2025 is approximately 4.38 to 4.98. This ratio compares the company's market value to its book value, reflecting how much investors are paying for the company's net assets. The average price/book ratio for 2024 was 6.43, a 2.13% decline.
• Enterprise Value-to-EBITDA (EV/EBITDA): Agilent Technologies' EV/EBITDA ratio is around 17.3x to 19.5x. This metric assesses the company's total value (including debt) relative to its earnings before interest, taxes, depreciation, and amortization, providing a view of its operational profitability.

Stock Price Trends:

• Agilent Technologies' stock has experienced fluctuations over the past 12 months. Recent data from April 2025 shows the stock price around $102.48.
• The 52-week high is $155.35, while the 52-week low is $96.43.
• Over the last 12 months, the stock price has fallen by 24.86%.

Dividend Information:

• Dividend Yield: Agilent Technologies has a dividend yield of approximately 0.84% to 0.97%.
• Payout Ratio: The company's payout ratio is about 18.19% to 21.92%, indicating the proportion of earnings paid out as dividends.
• The annual dividend is $0.99 per share.
• The last ex-dividend date was April 1, 2025.

Analyst Consensus:

• Analyst ratings are mixed, with a consensus rating of 'Hold.'
• Out of 13 analysts, 6 have a 'Buy' rating, and 7 have a 'Hold' rating.
• The average 12-month price target is $141.63 to $144.58, with a high forecast of $165.00 and a low forecast of $115.00.
• This average price target represents a potential upside of approximately 37.34% to 41.22% from the current price.

Additional Considerations:

Agilent Technologies' innovation and cost control have driven growth and margin expansion. However, its reliance on one-time sales and exposure to cyclical markets could weaken financial results during uncertain times.

Here is a table summarizing Agilent Technologies' valuation metrics:

Based on Morningstar's assessment, Agilent Technologies is trading at a 32% discount.

For more insights, refer to Breaking Down Agilent Technologies, Inc. (A) Financial Health: Key Insights for Investors.

Agilent Technologies, Inc. (A) Risk Factors

Agilent Technologies, Inc. (A) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and overall market conditions. Understanding these potential challenges is crucial for investors assessing the company's long-term viability and strategic positioning. For further insights into Agilent's strategic direction, refer to: Mission Statement, Vision, & Core Values of Agilent Technologies, Inc. (A).

One of the primary risks Agilent faces is intense industry competition. The life sciences, diagnostics, and applied chemical markets are characterized by rapid technological advancements and the presence of numerous competitors, some with greater financial and technical resources. This competitive landscape requires Agilent to continually innovate and invest in research and development to maintain its market position. Failure to do so could result in a loss of market share and reduced profitability.

Regulatory changes also pose a significant risk. Agilent's products and services are subject to extensive regulation by various governmental agencies, including the U.S. Food and Drug Administration (FDA) and similar international bodies. Changes in these regulations, such as more stringent approval processes or new compliance requirements, could increase the cost and time required to bring new products to market, thereby impacting Agilent's financial performance.

Moreover, Agilent is exposed to market condition risks. Economic downturns, fluctuations in currency exchange rates, and geopolitical instability can all affect the demand for Agilent's products and services. For example, a recession in a major market could lead to decreased spending on research and development, which in turn would reduce sales of Agilent's analytical instruments and related services.

Operational and financial risks are also detailed in Agilent's 2024 fiscal year filings. These include:

• Supply Chain Disruptions: The company relies on a global supply chain for components and materials. Disruptions, whether due to natural disasters, geopolitical events, or supplier issues, can lead to delays in production and increased costs.
• Cybersecurity Threats: As a technology company, Agilent is vulnerable to cybersecurity attacks that could compromise sensitive data, disrupt operations, and damage its reputation. Investing in robust cybersecurity measures is essential to mitigate this risk.
• Intellectual Property Protection: Agilent's success depends on its ability to protect its intellectual property. Infringement by competitors could erode its competitive advantage and reduce profitability.
• Financial Risks: Fluctuations in interest rates and currency exchange rates can impact Agilent's financial results. Effective risk management strategies are necessary to mitigate these financial exposures.

Agilent's mitigation strategies often involve:

• Diversification: Expanding into new markets and product lines to reduce reliance on any single area.
• Strategic Partnerships: Collaborating with other companies to share resources and expertise.
• Continuous Improvement: Implementing lean manufacturing and other efficiency initiatives to reduce costs and improve operational performance.

Below is a summary of potential risks based on recent filings:

Agilent Technologies, Inc. (A) Growth Opportunities

Agilent Technologies, Inc. (A) is focusing on several key areas to drive future growth, including product innovation, market expansion, and strategic acquisitions. These strategies aim to capitalize on emerging trends in life sciences, diagnostics, and applied chemical markets.

Key growth drivers for Agilent Technologies, Inc. (A) include:

• Product Innovations: Agilent Technologies, Inc. (A) consistently invests in research and development to introduce new and improved products.
• Market Expansions: Agilent Technologies, Inc. (A) is expanding its presence in high-growth markets, particularly in Asia-Pacific and emerging economies.
• Acquisitions: Agilent Technologies, Inc. (A) strategically acquires companies to enhance its product portfolio and expand its market reach.

Analysts predict steady revenue growth for Agilent Technologies, Inc. (A) in the coming years. Earnings estimates also reflect positive expectations, driven by the company's strategic initiatives and market position. For fiscal year 2024, Agilent Technologies, Inc. (A) reported revenue of $6.83 billion. The company anticipates revenues between $6.65 billion and $6.75 billion for fiscal year 2025.

Strategic initiatives and partnerships are crucial for Agilent Technologies, Inc. (A)'s growth. These collaborations enable the company to leverage external expertise and resources, accelerating innovation and market penetration.

Agilent Technologies, Inc. (A) holds several competitive advantages that position it for sustained growth:

• Strong Brand Reputation: Agilent Technologies, Inc. (A) is known for its high-quality products and services, fostering customer loyalty and trust.
• Technological Expertise: Agilent Technologies, Inc. (A)'s deep technological expertise allows it to develop cutting-edge solutions that meet evolving customer needs.
• Global Presence: Agilent Technologies, Inc. (A)'s global footprint enables it to serve customers worldwide and capitalize on growth opportunities in diverse markets.

The following table summarizes Agilent Technologies, Inc. (A)'s financial performance and future growth prospects:

Explore more about Agilent Technologies, Inc. (A) Investor Profile: Exploring Agilent Technologies, Inc. (A) Investor Profile: Who’s Buying and Why?